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Using the spin Seebeck effect (SSE), we study the propagation distance of thermal spin currents inside a magnetic insulator thin film in the short-range regime. We disambiguate spin currents driven by temperature and chemical potential gradients by comparing the SSE signal before and after adding a thermalization capping layer on the same device. We report that the measured spin decay behavior near the heat source is well accounted for by a diffusion model where the magnon diffusion length is in submicron range, \textit{i.e.} two orders of magnitude smaller than previous estimates inferred from the long-range behavior. Our results highlight the caveat in applying a diffusive theory to describe thermal magnon transport, where a single decay length may not capture the behavior on all length scales.